A termination clause is a portion of a contract that explains the rights of the parties to terminate, or cancel, their contract.
Termination clauses are commonly found in:
An early termination clause may penalize one of the contracting parties if they terminate the contract too early. Early termination clauses are often found in use agreements, such as automobile leases and cellular phone contracts. Such clauses usually impose fees for terminating an agreement prior to a specified date.
Termination for convenience clauses are often found in construction contracts, and they grant the owner the ability to terminate a contract at their own convenience, even when the contractor did nothing wrong. Such clauses also limit the amount that a contractor may recover if the contractor sues for breach of contract. Termination for convenience clauses first appeared in government contracts, but many private contracts are beginning to include them as well.
If you are drafting a contract with a termination clause, a commercial or business lawyer can help you write an agreement that protects your interests and legal rights. If you are involved in a breach of contract lawsuit, a business lawyer will advise you of your rights and legal defenses.
Last Modified: 10-03-2016 09:34 PM PDTLaw Library Disclaimer
We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.